USDCAD had a strong sell-off in the previous days following the downward retracement of the 1.2915 resistance level. The pair plunged to a new 14-week low near the 1.2500 strong psychological level during Tuesday’s session.
It’s losing some downside momentum in oversold conditions in the 4-hour chart on the RSI and MACD indicators, but intraday bias remains bearish as long as the 1.2588 minor resistance holds. Moreover, the 100-simple moving average is ready to post a bearish crossover with the 50-SMA indicating for further losses in the short-term chart.
The Current fall from 1.2500 could extend to the 1.2450 support barrier. On the upside, a move above 1.2588 could turn the intraday bias to neutral first before the upside correction. The price may hit the 61.8% Fibonacci retracement level of the last big up-leg with the low at 1.2450 and the high at 1.2915.
In the bigger picture, the MACD oscillator is strengthening its downward momentum (in the daily chart), while the RSI indicator is standing near the 30 level and is slightly sloping to the upside. As a side note, USDCAD printed the second consecutive bearish week and slipped more than 2%.